Stocks Extend Losses as Global Trade Tensions | U.S. Markets

The S&P 500 Index ($SPX) (SPY) at the moment is down -1.75%, the Dow Jones Industrials Index ($DOWI) (DIA) is down -1.80%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -1.40%.  March E-mini S&P futures (ESH25) are down -1.74%, and March E-mini Nasdaq futures (NQH25) are down -1.52%. 

Inventory indexes at the moment are sharply decrease for a second session, with the S&P 500 and Nasdaq 100 falling to 4-month lows and the Dow Jones Industrials falling to a 7-week low.  Worries about escalating international trade tensions are hammering equity markets again at the moment.  New US tariffs kicked in at the moment on US imports from Canada, Mexico, and China.  Financial institution shares and power producers are additionally underneath strain at the moment, resulting in losses within the broader market.

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Canada at the moment introduced a package deal of counter-tariffs towards US-made merchandise in response to the US tariffs efficient instantly and contains 25% tariffs on about C$30 billion ($20.6 billion) price of items offered by US exporters, with a second spherical of tariffs on C$125 billion of US exports in three weeks, together with big-ticket gadgets like automobiles, metal, and aluminum. Canada is the biggest single purchaser of US items, and vice versa.

China at the moment introduced tariffs as high as 15% on US agricultural items, efficient March 10, and banned trade with some protection firms in retaliation for US tariffs.

Market consideration will deal with President Trump’s deal with to a joint session of Congress Tuesday night.  On Wednesday, the Feb ISM companies index is predicted to fall -0.1 level to 52.7.  On Friday, Feb nonfarm payrolls are anticipated to rise by +160,000, and the Feb unemployment price is predicted to stay unchanged at 4.0%.  In the meantime, Feb average hourly earnings are anticipated to stay unchanged from Jan at +4.1% y/y.  Additionally, on Friday, Fed Chair Powell will give the keynote speech on the financial outlook at Chicago Sales space’s 2025 US Financial Coverage Discussion board. 

The markets are discounting the possibilities at 12% for a -25 bp price cut on the subsequent FOMC assembly on March 18-19.

Abroad stock markets at the moment are blended.  The Euro Stoxx 50 dropped to a 2-1/2 week low and is down -2.85%.  China’s Shanghai Composite Index recovered from a 3-week low and closed up +0.22%.  Japan’s Nikkei Inventory 225 fell to a 5-1/2 month low and closed down -1.20%.

Curiosity Charges

June 10-year T-notes (ZNM25) at the moment are up +10 ticks.  The ten-year T-note yield is down -1.3 bp to 4.145%.  June T-notes at the moment climbed to a 4-1/2 month high, and the 10-year T-note yield fell to a 4-1/2 month low of 4.104%.  T-notes at the moment prolonged Monday’s features on carryover assist from Monday’s weaker-than-expected US ISM and construction spending reviews.  Additionally, at the moment’s US tariffs on Canada, China and Mexico fueled considerations about slowing international growth, a supportive issue for T-notes. As well as, T-notes have elevated safe-haven demand because of weak spot in equity markets. 

European bond yields at the moment are transferring decrease.  The ten-year German bund yield is down -0.6 bp to 2.485%.  The ten-year UK gilt yield is down -4.5 bp to 4.509%.

The Eurozone Jan unemployment price was unchanged at a file low of 6.2%, exhibiting a stronger labor market than expectations of 6.3%.

Swaps are discounting the possibilities at 99% for a -25 bp price cut by the ECB on the March 6 coverage assembly.

US Inventory Movers

The weak spot within the Magnificent Seven Know-how shares is weighing on the general market.  Meta Platforms (META) is down more than -4%, and Amazon.com (AMZN) is down more than -2%.  Additionally, Nvidia (NVDA) and Microsoft (MSFT) are down more than -1%.

Tesla (TSLA) is down more than -6% after reporting its China Feb vehicle deliveries sank -49% y/y to 30,688 items. 

Financial institution shares are underneath strain at the moment.  Citigroup (C) is down more than -7%, and KeyCorp (KEY), Financial institution of America (BAC), Morgan Stanley (MS), Wells Fargo (WFC), Uncover Monetary Companies (DFS), and Capital One Monetary (COF) are down more than -6%.  Additionally, Goldman Sachs (GS), American Categorical (AXP), and Northern Belief (NTRS) are down more than -5%.  As well as, Fifth Third Bancorp (FITB), JPMorgan Chase (JPM), and M&T Financial institution Corp (MTB) are down more than -4%. 

Power producers and power service suppliers are transferring decrease, with the price of WTI crude oil down more than -1% to a 2-3/4 month low.  Baker Hughes (BKR), Halliburton (HAL), Marathon Petroleum (MPC), and Phillips 66 (PSX) are down more than -4%.  Additionally, APA Corp (APA), ConocoPhillips (COP), Diamondback Power (FANG), and Schlumberger (SLB) are down more than -3%.

Cruise line operators and journey shares are falling at the moment on considerations concerning the affect of escalating trade tensions on international growth.  Royal Caribbean Cruises Ltd (RCL), Carnival (CCL), Delta Air Strains (DAL), United Airways Holdings (UAL), and Norwegian Cruise Line Holdings (NCLH) are down more than -6%. 

Defensive food producers and client sturdy shares are climbing at the moment with the selloff within the broader market.  Hershey (HSY), Basic Mills (GIS), Mondelez Worldwide (MDLZ), and Yum! Manufacturers (YUM) are up more than +2%.  Additionally, JM Smucker (SJM), Procter & Gamble (PG), Pepsi Co (PEP), Campbell Firm (CPB), Conagra Manufacturers (CAG), and Kimberly-Clark (KMB) are up more than +1%.

Finest Purchase (BBY) is down more than -13% to steer losers within the S&P 500 after forecasting full-year adjusted EPS of $6.20 to $6.60, with the midpoint beneath the consensus of $6.55. 

Illumina (ILMN) is down more than -1% after China banned the company from promoting genetic sequencing merchandise in China as half of a wave of retaliatory measures towards recent US tariffs on Chinese language items. 

Okta (OKTA) is up more than +19% after reporting This fall income of $682 million, higher than the consensus of $669.8 million, and forecast 2026 income of $2.85 billion-$2.86 billion, stronger than the consensus of $2.80 billion. 

Walgreens Boots Alliance (WBA) is up more than +6% to steer gainers within the S&P 500 after Bloomberg reported that Sycamore Companions is nearing an acquisition of the company. 

ON Holding (ONON) is up more than +4% after reporting a This fall gross margin of 62.1%, higher than the consensus of 61.7%. 

Labcorp Holdings (LH) is up more than +1% after Citigroup upgraded the stock to buy from impartial with a price goal of $300. 

Earnings Experiences (3/4/2025)

AutoZone Inc (AZO), Finest Purchase Co Inc (BBY), Crowdstrike Holdings Inc (CRWD), Ross Shops Inc (ROST), Goal Corp (TGT).

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